This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

J&J to Acquire Omrix for $438 Million

Stocks in this article: JNJ OMRI

Johnson & Johnson (JNJ) signed a deal to acquire Omrix Biopharmaceuticals (OMRI) for $438 million in cash.

Omrix is expected to operate as a stand-alone entity reporting through Johnson & Johnson's Ethicon subsidiary, a provider of suture, mesh, hemostats for surgery. In a statement Monday, Johnson & Johnson said the acquisition provides Ethicon with an "opportunity to strengthen its presence in active, biologic-based hemostats and convergent products for various surgical applications. "

Under the terms of the agreement, Johnson & Johnson will begin a tender offer to Omrix shares for $25 each. The tender offer is expected to close by the end of December.

Shares of Omrix closed Friday at $21.16.

Robert Taub, Omrix's CEO, and entities he controls, have agreed to tender about 16% of Omrix's outstanding shares to the tender.

If the deal closes in 2008, Johnson & Johnson said it expects to incur a one-time, after-tax charge of about $120 million from the write-off of in-process research and development charges. Johnson & Johnson said the acquisition is expected to be breakeven to slightly dilutive to its 2009 per-share earnings.

Ethicon currently has exclusive distribution rights in the U.S. and the European Union for two active, biologic-based hemostats manufactured by Omrix. The companies also are partners on a separate surgical product which is in Phase II trials.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs